New York, NY —

After almost four years without a contract, the union representing school principals and administrators has reached a tentative agreement with the city that will provide a pay raise of more than 23 percent over the next three years.

REPORTER: Mayor Bloomberg says the agreement reiterates the theme of accountability placed on the principals, and says they will now be able to make hiring decisions without considerations of seniority.

BLOOMBERG: The contract eliminates a practice known as "bumping," which allows a senior assistant principal to take an open position in the school even if the principal at that school thinks that he or she is not the best fit.

REPORTER: The contract will also allow the School Chancellor to award high-performing principals a $25,000 bonus for volunteering to lead high needs schools for at least 3 years.